Hiring Intentions Up as Job Market Confidence Grows, Despite Sequestration Impacting One-Third of Companies

More than half of small companies said the Affordable Care Act will not impede their own job creation

NEW YORK, June 4, 2013 /PRNewswire/ -- America's hiring managers and recruiters remain ready to hire, according to a national survey conducted by Dice Holdings, Inc. (NYSE: DHX), a leading provider of specialized websites for professional communities.

A majority of hiring managers (52%) plan to hire more professionals in the second half of 2013 than they did in the first half. That is an improvement from just six months ago, when 46 percent said they planned to increase hiring in the first six months of 2013.  The results have seesawed across the halfway point since May 2010 when the question was first posed.

While hiring managers read of the economy's impact on their business is essentially unchanged, there are other signs of swelling confidence in the job market from professionals.  The most encouraging indication of tipping the job market toward more activity, 39 percent of hiring managers and recruiters said the number of voluntary departures at their companies or their clients' companies has increased this year.  That is a jump from 32 percent of respondents who reported increasing quits just six months ago.

When asked why they believe candidates are choosing to leave their current positions, hiring managers most frequently cited these three motivations:

• Increased salaries;
• Better career opportunities elsewhere; and
• Better job title or promotion.

That search for more money is showing itself during the recruiting process, with 42 percent of hiring managers and recruiters noting that candidates are asking for more money; this compares to just 36 percent of respondents who answered the same way in late 2012.

However, more employers are attempting to stave off employee departures, with 31 percent of respondents reporting they are seeing more counteroffers from existing employers or making those offers themselves.  That compares to slightly more than a quarter (26%) of hiring managers and recruiters that saw counteroffers on the rise six months ago.

"Hiring managers and recruiters are perpetually more optimistic about the second half of the year, but this is the first notable increase we've seen in confidence from professionals," said Scot Melland, Chairman, President & CEO of Dice Holdings, Inc.  "That said, we will likely continue to have modest job creation for the balance of the year due to slow economic growth, continued challenges in finding qualified talent and the negative impacts from sequestration that go beyond defense to key sectors like healthcare, technology, consulting, education, non-profits and manufacturing."

CONFIDENCE CRISIS AVERTED… FOR NOW?

The renewed confidence among professionals could be due in part to some resolution to the large questions that were looming six months ago, as hiring managers and professionals were waiting to see the full impact the election, sequestration and the implementation of the Affordable Care Act would have on their businesses and careers.

On sequestration, nearly two-thirds (64%) of those surveyed said the mandatory spending cuts had no impact on their business, with another 15 percent suffering a direct effect and 21 percent acknowledging an indirect impact.

Of those companies that did see consequences tied directly to sequestration, the most popular answers cited were:

• Slowdown in new business activity;
• Slowdown in new hires; and
• Layoffs of some existing employees. 

That said, more than half (52%) of those sequestration-impacted businesses said any adjustments they need to make are still being assessed, with just 10 percent noting those changes were behind their company.

When asked about the Affordable Care Act, more than half (51%) of the respondents with less than 50 employees said their company was not making plans to keep headcount below 50 employees because of the implementation of the new health care law, as compared to 17 percent of small company respondents that were taking steps to stay under that level.  However, when looking at shifts in the types of hiring in 2013, employers, regardless of size, are anticipating using more contractors, temporary staffing and part-time employees than six months ago. 

About the survey

From May 14 to May 17, 2013 Dice Holdings surveyed U.S. companies, government entities and recruiting firms from every region of the country who hire or recruit a variety of professionals. More than 1,000 hiring professionals responded to the email survey, with 73 percent identified as working for companies that recruit for their own needs. Of that group, 39 percent had more than 500 employees.

About Dice Holdings, Inc.

Dice Holdings, Inc. (NYSE: DHX) is a leading provider of specialized websites for professional communities, including technology and engineering, financial services, energy, healthcare, and security clearance. Our mission is to help our customers source and hire the most qualified professionals in select and highly skilled occupations, and to help those professionals find the best job opportunities in their respective fields and further their careers. For more than 20 years, we have built our company by providing our customers with quick and easy access to high-quality, unique professional communities and offering those communities access to highly relevant career opportunities and information. Today, we serve multiple markets primarily in North America, Europe, Asia and Australia.

Media Contacts

Jennifer Bewley and Rachel Ceccarelli, 212-448-8288 
[email protected]

SOURCE Dice Holdings, Inc.